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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- As yields in the US reversed the entirety of yesterday’s move higher, the US dollar echoed the price action, trading with an offered tone throughout Wednesday. The USD index is set to snap a four-day winning streak, having retreated 0.62% as we approach the APAC crossover.
- Greenback weakness lent support to the majority of other G10 currencies, with particularly impressive rallies for the likes of AUD, CAD and NZD, all rising over 1% amid another solid day for major equity benchmarks. In particular, the Canadian dollar was provided with an additional tailwind following above expectation CPI figures for March. This prompted various sell-side institutions to adjust their BOC rate calls with a Scotiabank analyst citing there is a solid case for a 75-100bp single hike in June.
- USDCAD’s recent move lower has threatened a bullish theme and highlights the fact that price has so far failed to remain above the 50-day EMA. Note that the Apr 13 session appears to be a bearish engulfing candle, which if correct, highlights a reversal. The breach of both 1.2522, Apr 14 low and 1.2479, Apr 6 low are additional bearish developments.
- USDJPY remains extremely volatile and following another overnight cycle high print of 129.40, the pair has sharply retraced. Worth noting the pair came within four pips of touted Fibonacci projection resistance and aided by the broad dollar weakness, the pair now resides back below the 128 mark.
- The Chinese Yuan was the clear outlier on Wednesday – weaker by almost half a percent. CNH weakness comes as an extension from price action on Tuesday and price action has been exacerbated by technical breaks of both the 200day MA and long-term downward trendline as indicated below.
- New Zealand CPI highlights the overnight data releases before the final reading of Eurozone CPI. Philly Fed Manufacturing Index and Initial Jobless Claims are on the US docket before potential comments from Fed, ECB and BoE Governors as they participate in panel discussions at the Spring meetings of the IMF.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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